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Illicit Cigarette Production Surges in the EU, Impacting Public Health and Revenue

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The European Court of Auditors has revealed a significant rise in illicit cigarette production across the EU, with nearly one in ten cigarettes now produced illegally. This booming trade is estimated to cost the bloc around €13 billion in lost tax revenue each year, raising concerns about its broader implications for public health and organized crime.

Organised crime groups are increasingly establishing illicit factories within EU borders, allowing them to streamline operations and cater directly to local markets. These factories, equipped with advanced machinery and staffed by skilled technicians, can produce millions of cigarettes daily. Recent police raids have uncovered large-scale operations in countries like Belgium and Spain, highlighting the alarming scale and sophistication of this underground industry.

The rise in illegal tobacco production not only undermines public health policies by making tobacco more accessible, especially to youth, but also funds other criminal activities. As tobacco consumption declines overall in the EU, the share of illicit products has steadily increased, raising questions about the effectiveness of current regulations and enforcement measures.

Despite efforts from EU member states to combat the trade, a lack of harmonized laws and inconsistent enforcement has created significant gaps. The report emphasizes the need for a coordinated strategy to tackle organized crime effectively, as current measures are proving insufficient to address this growing threat.

Source: The Guardian

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News Category: Money Tags: cigarettes, crime, eu, health, tax

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